British inflation reached its highest rate since the Labour government handed over monetary policy responsibilities to the Bank of England (BoE) in 1997, reports Bloomberg.

At 3.3%, inflation is way above target (2%), and BoE Governor Mervyn King has conceded that it could breach 4% later this year.

In times of financial crisis there is always a call from somewhere for financial firms to be regulated further. Gordon Brown has recently talked of creating an ‘early warning system’ in the financial markets if not from voluntary submissions then by regulation.